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JUDICIARY COMMITTEE 



TO WHOM WAS EBFEBEBD THE 



'« RESOLTJTIOIV OF IIVQXJIJRY 



Into Alleged " Illegal Use, or Unlawexjl Application 

OF THE Public Money, or any Paet of the School 

Fund for Mobile County, or other 

Public Fund." 



MONTGOMERY, ALA.: 

JOHlf O. BTOEBS k CO., SSAIB P»X*T»BS] 

1670. 






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REPORT. 



The Judiciary Committee, to whom was referred the 
" Eesolution " of inquiry into alleged " illegal use or un- 
lawful application of the public money of any part of the 
school fund for Mobile county, or other public fund," beg 
leave to report, that they have availed themselves of all ac- 
cessible means of information upon the subject, and of the 
benel&t which was to be derived from counsel learned in 
the law, some of whom appeared before your committee as 
counsel for Mr. G. L. Putnam and Dr. N. B. Cloud, whilst 
others appeared as counsel against them, and for what was 
and is known as the " Old School Board of Commission- 
ers," as the result of laborious and faithful inquiry. 

Your committee report that the voluminous evidence ad- 
duced establishes to their satisfaction the following facts, 
to-wit : 

1. That by illegal conduct of said Cloud, State Superin- 
tendent, and G. L. Putnam, (so-called) County Superin- 
tendent for Mobile county, the latter obtained from the 
State Treasurer, on or about the 29th day of January, 
1869, a sum between five and six thousand dollars, and 
by far the greater portion thereof was unlawfully applied, 
if not the whole amount thereof was illegally used, by 
said Putnam in paying off certain teachers and employees 
belonging to what is known as the "Blue College" in Mobile, 
which said College belongs to, and has ever been conducted 
under the patronage of the American Missionary Associa- 
tion, and at the time said money was so paid, or pretended 
to be paid, and expended for the use and benefit of said 
College and teachers, said teachers were in the employ- 
ment of said Board ; and in no just sense were they em- 



ployed as teachers under the school laws of Alabama. And 
by reason of such illegal use of said funds, this large sum 
was diverted and illegally used, and making the treasury of 
the State tributary to an institution in no way connected 
with the State school system at that time — and thereby 
depriving thousands of children in the county of Mobile 
from any participation in said funds. That at the time said 
money was so received and illegally expended, said G. L* 
Putnam was not a bonded officer as County Superintendent 
of Public Schools in Mobile county ; and that said money 
v/as so drawn from the treasury of the State, and so ille- 
gally used, when it was known to said Cloud and Putnam 
that the latter had no proper bonds on file as County Su- 
perintendent of Mobile county ; and with the full knowledge 
of the fact that said Putnam was not in fact said County 
Superintendent, said Cloud did issue a paper, writing to said 
Putnam, which enabled him to obtain said large amount, 
and Putnam illegally used the same as herein shown. 

Although your committee feel it due to Dr. Cloud to say 
that he possibly acted in this transaction with a view to 
reconcile certain school difficulties in Mobile, nevertheless, 
your committee cannot look with allowance upon such un- 
justifiable conduct in so important a public functionary — 
conduct so wholly unreconcilable with any duty or privi- 
lege under the school laws. 

The State Superinteodent, Dr. Cloud, appointed two 
Superintendents in Mobile county, one called the County 
Superintendent, the other called the Superintendent of 
Colored Schools. 

2. That in July, 1869, the said State Superintendent ap- 
pointed said Putnam County Superintendent of Mobile 
county ; that more than sixty days afterwards the said 
Putnam executed a bond as Couaty Superintendent, which 
was approved by the Judge of the Circuit, which includes 
Mobile county ; which bond has recently been pronounced 
by the grand jury of Mobile county as insufficient, as ap- 
pears by the published report of said grand jury ; that 
since the approval of said bond, the said State Superin- 
tendent furnished the said Putnam with the instrument 



which enabled him to obtain from the Auditor a warrant 
on the State Treasurer for over nine thousand dollars of 
the public school funds of Mobile, which warrant the said 
Putnam was restrained from collecting only by an injunc- 
tion which has been dissolved within the last few days by 
the action of the Supreme Court ; but was dissolved by 
that court upon grounds which establish the unalterable 
dedication of the tuhole of the public school funds of Mobile 
county to the purpose of educating the youth of that county 
and to no other purpose. 

The warrant of the Auditor last mentioned is not shown 
ever to have passed out of the hands of said Putnam ; and 
the presumption is plain that he still has it and will now 
collect, it, as said injunction is dissolved, if he has not 
already done so ; and there is no information that any new 
bond has been given. 

3. That since the said Putnam obtained the last men- 
tioned warrant, and whilst said injunction was of full force 
as to said State Superintendent as well as to said Put- 
nam, the said State Superintendent, at the instance, and 
by the procurement of said Putnam, obtained from 
the State Treasurer two thousand dollars, or a larger 
sum, of the public school funds of Mobile county and 
city, with the intent and purpose, on the part of both of 
Cloud and Putnam, that the same should be applied to the 
payment of fees of the lawyers employed by one or both 
them in said litigation in said injunction suit ; and that the 
same was in fact applied in paym^t of fees of said law- 
yers ; the said Cloud and Putnam both assenting thereto. 
This application of said amount of the public school funds 
of Mobile, is palpably illegal, and is shown to be so by the 
decision of the supreme court in the case above referred to. 

4. That whilst said injunction was of force, the said Put- 
nam, through the act of said Cloud, obtained $3,600 of the 
public school funds of Mobile county, a part, if not all of 
which, was illegally used or applied. 

5. That after all this, the said State Superintendent drew 
a warrant, at the instance of said Putnam, upon the Audi- 
tor, (Comptroller) for three thousand three hundred dol- 



lars of the public school funds of Mobile, which warrant 
was drawn under color of section 975 of the Kevised Code, 
and was presented to the Auditor ; but the said Putnam 
being in the Auditor's office before the Auditor drew his 
warrant on the Treasurer for said $3,300, the Auditor 
asked Putnam if he was not interested in said warrant ; 
Putnam admitted he was, and thereupon the Auditor re- 
fused to allow or act on said warrant of the State Superin- 
tendent, which was afterwards torn up by Cloud or Put- 
nam. 

6. Tour committee further state, that many other facts 
were adduced before the committee, which tended to incline 
the minds of the committee to the opinion and belief, that 
the teachers in the Blue College aforesaid, in Mobile, were 
paid and allowed generally, salaries and compensation — and 
particularly one Squires — sum and sums of money for their 
services to a larger amount than is consistent with a faith- 
ful and economical administration of the trust on the part 
of said Cloud and Putnam ; for instance, at the rate of 
$4l,000 per year, or $1,000 per quarter to said Squires. 
That there appears further, from the evidence, that sums 
of money, too large in amount and greatly disproportionate 
to the services rendered, are, and have been allowed and 
paid to county superintendents in the counties in tkis State. 

7. Your committee with great diffidence, respectfully 
recommend to your honorable body, and suggest some 
change in the system and order of officials in the school 
system, such as — 

1. The abandonmenJ of the special legislature at the ear- 
liest moment in which a change may be practicable, by an 
amendment of the Constitution. 

2. The passage of laws prohibiting any person from 
holding more than one office in the entire school system, 
under such prohibitions and restrictions as the legislature 
in their wisdom may deem proper and expedient. 

3. The adoption of a uniform compensation for all county 
superintendents. 

4. A general reduction in the pay of all the officials. - We 
especially call the attention of this General Assembly, and 



the Senate in paiticular, to this item, a? partaking too much 
of the quality of a, sponge to the amount of funds raised tor 
school purposes in this State, and as tending to greatly 
depreciate the present school system in the estimation ot 
the tax-paying people of Alabama^ ^ McAFEE, 

Chairman. 



I. SIBLEY, 
DAN. Y. SEYIEE, 
A. N. WOKTHY. 



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